Computer Associates Cuts 1Q Revenue Outlook

The management software company expects revenue for the quarter to total $830 million to $850 million, compared to previous guidance of $865 million to $885 million. Computer Associates attributed the lower outlook to weak services business performance, a higher mix of maintenance in its indirect business recorded on a prorated basis, and lower subscription revenue.

"Our direct bookings grew approximately 35 percent and our indirect bookings grew approximately 40 percent on a year-over-year basis," said chief operating officer Jeff Clarke in a statement Thursday. "We expect revenue growth of 5 percent to 8 percent for the quarter versus last year."

The company said it will meet earnings guidance because of its expense controls. Computer Associates anticipates bottom-line earnings of 5 cents to 7 cents per share, and operating earnings of 17 cents to 19 cents per share excluding items.

Analysts surveyed by Thomson First Call put the company's first-quarter earnings at 18 cents per share on sales of $877.6 million.

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The company's shares changed hands at $24 in after-hours trading, according to Inet. The stock closed at $24.54, down $1.46 or 5.6 percent on the New York Stock Exchange.